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State of Michigan Announces Court Approval of the Bauserman Unemployment Insurance Agency False Fraud Class Action

LANSING - Michigan Attorney General Dana Nessel announced today that the Michigan Court of Claims entered an order certifying the Bauserman Settlement Class, appointing Class Counsel, and preliminarily approving the proposed Class Action Settlement detailed in the Amended Settlement Agreement.

“I am grateful to the court for agreeing that the compensation settlement is fair, reasonable, and adequate and that it satisfies all due process requirements,” said Nessel. “While this settlement cannot undo the hardships these residents faced, it does secure the long overdue relief that they deserve.”

On October 20, 2022, the Attorney General and the law firm of Pitt, McGehee, Palmer, Bonanni & Rivers announced that the State of Michigan had reached a $20 million settlement in Bauserman v. Unemployment Insurance Agency. The parties submitted settlement documents to the Court for approval.

The Court conducted a hearing on January 9, 2023, and heard arguments supporting the request for Preliminary Approval of the Settlement and Certification of a Settlement Class.

The Court appointed as Claims Administrator, UIA Fraud Class Action, c/o Analytics Consulting LLC, P.O. Box 2002, Chanhassen, MN 55317-2002, Phone: 833-438-5028, Fax: 952-404-5750, UIA Fraud Class Action Settlement email, UIA Fraud Class Action Settlement website.

The Court’s Order of January 19, 2023, Approving the Settlement and documents submitted by Class Counsel, including the Plan of Allocation, are available at UIA Fraud Class Action Settlement website or at Pitt, McGehee, Palmer, Bonanni & Rivers website.

The Attorney General and the Pitt, McGehee, Palmer, Bonanni & Rivers law firm will issue periodic press releases to assist the public with this settlement process.

INFORMATION FOR CLAIMANTS:

Eligible claimants may be entitled to an award from the Compensation Fund for their economic losses and they may also be eligible for an additional award of compensation for hardships related to the wrongful collection activity.

To be eligible for an award of compensation, a Claimant must meet the definition of the Settlement Class:

A Claimant is eligible if he/she received an initial Determination or Re-Determination of Intentional Misrepresentation issued by the Agency between October 1, 2013, and August 31, 2015, issued initially through the Agency’s auto-adjudication process, and suffered a first Collection on or after March 9, 2015, and he/she does not opt-out from the Settlement.

On February 1, 2023, the Claims Administrator will issue a Notice of Settlement of Bauserman UIA False Fraud Class Action. The Notice will be mailed to each known Class Member.  This Notice provides contact information for Class Counsel and the Claims Administrator and a table of important dates, along with instructions on what documents Claimants must submit to be eligible under the Settlement Agreement. The notice also details an appeal process concerning disputes about eligibility for participation in the Settlement Class and disagreements over the monetary award.

To begin the process, claimants must submit a completed Registration Form, by April 5, 2023, and submit a Claim Form by April 14, 2023. The Registration Form and Claim Form will be available for completion on-line or downloaded through any of the websites listed below.

Class Counsel and UIA have compiled a Class List which they believe identifies all eligible Class Members and details the economic losses they experienced because of a wrongful collection. Claimants who are on the Class List will automatically be eligible to participate in the Settlement. The Class List information will become available upon receipt of a Claimant’s Registration Form. If a Claimant is on the Class List and agrees with the economic losses shown on the List and submits a timely Claim Form, no further action will be required to recover compensation for economic losses.

Eligible Class Members may also apply for additional compensation from a Hardship Fund established by the Plan of Allocation. The Plan of Allocation spells out the criteria which must be met in order to receive a hardship award.

Individuals who meet the definition of a Class Member and who do not exclude themselves will have their legal rights adjudicated and will be bound by the final judgment entered in the case. Class Members may exclude themselves by submitting an Opt-Out Form by April 5, 2023.

PLEASE REVIEW THE NOTICE CAREFULLY AND NOTE ALL DEADLINES—A LATE REGISTRATION OR CLAIM MAY NOT BE ACCEPTED.

Any Claimant who timely objects to the Settlement, or any part of it, will have his/her Objection heard by the Court at the Fairness and Final Approval Hearing on July 21, 2023. Please note that the Court will not change the amount of a Claimant’s award. The parties estimate that payments will issue during the period August 19, 2023, through September 8, 2023.

Those individuals who do not directly receive a Notice and believe they qualify as an eligible member of the defined Settlement Class, can find the notice posted on the following websites: Attorney General, Unemployment Insurance Agency, Class Counsel, and Claims Administrator, and can submit the requested documents to determine if they qualify as an eligible Class Member.

The Court appointed Michael L. Pitt, Jennifer L. Lord, Kevin M. Carlson, Bayan Jaber, and Beth M. Rivers as Class Counsel for the Settlement Class. Class Counsel can be reached by phone at 248-658-0014 or you may email Class Counsel.

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